Consumer News

Japanese Auto Industry Devastated in Wake of Earthquake, Tsunami

March 14, 2011

With thousands of people missing, and a death toll expected to exceed 10,000 souls, Japanese automakers are halting production — not just to consider their own repairs, but to give their employees a chance to regroup with families after last week’s disastrous earthquake and tsunami.

With many of its citizens homeless and hungry, and much of the country without power, it’s impossible to estimate the reach of the devastation of the worst quake ever to strike Japan; on a more targeted subject, AutoBlogGreen says insurance analysts estimate that the earthquake and resulting tsunami could end up affecting the global automotive industry by as much as $10 billion. Major ports and airports in Japan are shut down for the immediate future, limiting not just the transport of incoming humanitarian assistance and disaster relief, but for the U.S.-bound exports of Japanese vehicles and parts.

Widespread power outages make communication challenging, though major automotive manufacturers have sent out the following releases reporting varying degrees of damage.

How Japanese Automakers are Dealing with the Disaster

Each of the major car companies in Japan is coping with the twin tragedies of the earthquake and tsunami in different ways.

Acura/Honda

Honda reported at least one death and 30 injuries in its facilities. All production is suspended at the following Honda plants through at least March 20: Sayama, Ogawa, Tochigi, Hamamatsu, Kumamoto, and Suzuka to allow employees focus on the recovery of each operation. Honda associates will not come to work during this time. According to AutoNews.com, Honda expects to lose about 16,600 units of auto production. About 2,500 of those vehicles – including the Fit small car, CR-V SUV, Insight hybrid, and Acura RL and TSX models – would have been bound for the United States.

Mazda

Mazda is suspending production at its Hiroshima and Hofu plants until at least March 16, affecting every model it sells in the United States except the Mazda6 sedan, which is made in Michigan at its joint venture plant with Ford.

Nissan/Infiniti

Nissan is suspending operations at its Oppama, Kyushu, Yokohama, and Shatai plants until at least Wednesday, March 16 and at its Tochigi Assembly Plant and Iwaki Engine plant until Friday, March 18. According to Forbes.com, the tsunami damaged as many as 2,300 stored vehicles — including 1,300 U.S.-bound cars — at the Port of Hitachi. Shipment of some Infiniti vehicles, as well as the Nissan GTR and 370Z, to the U.S. are likely to be delayed.

Suzuki

Suzuki Motor Corporation has no reported harm to Suzuki’s personnel, headquarters, or manufacturing plants located in the Shizuoka Prefecture region. Suzuki’s facilities are nearly 400 miles away from the earthquake’s epicenter.

Toyota

Toyota Motor Corp has stopped production at two assembly plants and a parts factory in northern Japan. According to TheDetroitBureau Central Motor Corporation Miyagi Plant, which produces the subcompact Yaris as well as other Toyota vehicles, is located near the center of the disaster area, which could require a substantial effort to place back into operation, given the reports of widespread devastation from the earthquake and tsunami in the Miyagi prefecture, which is north of the quake’s epicenter in Sendai.

We express our deepest sympathy to earthquake victims and truly hope that the areas devastated by the earthquake and tsunami will be reconstructed as soon as possible. If you would like to make a donation to help the victims in Japan, visit The Red Cross today.